AI in Transport & Logistic

Art of machine learning
Transport and Logistics form the lifelines of every industrial nation’s economy. Eliminating the
distance between a manufactured product and the customer is the responsibility of this
industry. Supply chains are extremely complex and delicate to cater to the needs of ever-
changing consumer demand. The process of delivering goods might seem straightforward, but it
is much more complicated. It encapsulates processing, inspection, storage, navigation, and
communication. Even a slight negligence or time lag might potentially depress the supply chain.
Every smart industrialist and businessman understand the crucial significance of seamless
logistics and transport in a dynamic industry. What may seem to be an effortless process,
involves days of diligent management by a humongous workforce.
Challenges Faced by the Transport and Logistics Industry
The Transport and Logistics Industry is looking forward to evolution and innovation. 5 of the
crucial challenges faced by this industry are:
Inefficient inspection
Compliance with international rules and regulations is non-negotiable for every industry. The
current inspection processes are manual and hence, allow room for errors, higher costs, and
processing time. Defective products, if delivered often cause serious damage to the company’s
reputation.
Limited visibility
Currently heavily dependent on human workforces, the numerous processes are not
completely transparent to the employer.
Higher costs
Inefficient methods and manual errors can cost the company a lot of resources and incur high
costs. Also, employing an unnecessarily large workforce adds a lot more maintenance and
pushes the costs higher. Inefficient transportation only increases fuel and labor costs.
Higher processing time

Since almost all processes are manual, they often demand a lot of time and depresses the net
throughput. It is well known that ‘Time is Money’, hence, more time is more cost incurred.
Maintaining inventory
It is necessary to centralize all data from invoices and goods so that the data remains readily
accessible, secure, and error-free, which is a monotonous and tiresome task for manual
laborers.
Growth of AI and Machine Vision technology

Artificial intelligence is the latest technological marvel that helps machines carry out
cognitive functions, like humans. Only, this workforce is 100% obedient, reliable, accurate, and
cheaper. Machine Vision devices, equipped with AI, have started creating deep footprints in all
industries. Gradually, relying on the magical vision of AI, more and more companies are
incorporating AI in their enterprises. According to Forrester, investment is AI increased by a
staggering 300% in 2017 as compared to 2016. Sources suggest that AI could contribute up to $
15.7 trillion to the world economy by 2030.
Applications of Machine Vision in Transport and Logistics
 Self-Driving Vehicles
Driverless cars that were a part of sci-fi fiction are now a reality. Machine vision
systems dynamically analyze the surroundings and traffic status. It helps increase
passenger safety; reduce travel time and congestions on the road. Ultimately, it
also helps in reducing carbon emissions. Such driverless taxis have already started
operating in Tokyo.
 Automating repetitive tasks

Automating repetitive tasks such as extracting data from invoices and
maintaining inventory can lower the costs and time significantly. AI-equipped
devices can even provide intelligent recommendations to maximize the throughput
and minimize the costs.
 Seamless inspection
Flawed and incompetent methods of manual inspection must now be scrapped.
Machine Vision devices can perform these arduous and meticulous tasks, with
100% accuracy in seconds. They can accurately report or segregate defective goods,
preventing any further trouble.
 Predictive maintenance
Combined with IOT, Machine Vision devices can predict their own maintenance
and alert the employer beforehand. Thus, fixing them before they break down will
help prevent any imminent issues.
 Autonomous warehouses and storage centers

By automating warehouses, the overall production and efficiency will definitely
shoot upwards. Robotic Process Automation (RPA), combined with human
expertise, will help maximize profits and enhance the customer experience.
 Robotics And Automation

Smart manufacturers are efficient by design. This is where robotics and
automation thrive. Moreover, according to the Robotic Industries Association,
manufacturers see the potential. The continued trend toward collaborative
environments has played a significant role in the rise of automation. Unlike
historical deployments where one or two processes often consumed a
disproportionate share of the project cost, collaborative robots (or cobots) allow for
incremental investment. As a result of this, manufacturers can now automate one
process at a time.
There is one thing we can be sure of about the factory of the future: it will
be smart. Moving away from the basic automation of the factories of the past, the
smart factory is predicted to integrate technology into every aspect and part of the
manufacturing process. Fully connected, flexible, and hyper-efficient, the new
manufacturing model of industry 4.0 will make use of modern technologies such as
artificial intelligence, virtual and augmented reality, and the internet of things. It is
a development we have already begun to see in action. Extensive mechanization
has also contributed drastically to reducing reduced labor costs in the
manufacturing industry when compared to the traditional method of handmade
goods.
Several corporations have started adopting AI in Transport and Logistics. Numerous others have
made collaborations with software companies to incorporate AI and create systems tailored to
their requirements. Some of such corporations are:
 Continental expressed intentions of developing delivery robots at the CES 2019.
 NVIDIA and Mercedes – Benz have collaborated to develop AI in cars.
 Huge corporations like Wal-Mart, Nike and Ikea have already developed and started
using automated warehouses.
 Automated taxis have already started functioning in Tokyo, Japan.
 S. logistics have started incorporating autonomous trucks which, according to

a Mckinsey report, will reduce the maintenance and administration costs by a
significant 45%.
Conclusion
To sum up, the time is ripe for an AI revolution in Transport and Logistics. The world is, slowly
but surely, embracing AI in every sector. According to IDC, the worldwide investment in AI is
going to double in four years, reaching $110 billion by 2024. Integration of AI into this complex
web of production and distribution is sure to disrupt conventional strategies of this arena.
Leveraging AI in Transport and Logistics will help reduce idle time, carbon emissions, traffic, and
increase capacity, passenger safety, and productivity drastically.
The integration of new technologies within the factory has ushered a new age of
manufacturing. With decreased labour costs, increased efficiency and reduced waste, the
factory of the future will be cheaper and more environmentally friendly. Improved quality
control also means that superior items come off the production line. This is bound to benefit
both consumers who require reliable products of the highest quality, and the companies, which
aim to supply them.

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AI in Transport & Logistic

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Art of machine learning

Challenges Faced by the Transport and Logistics Industry

Higher processing time

Growth of AI and Machine Vision technology

Applications of Machine Vision in Transport and Logistics

 Automating repetitive tasks

 Autonomous warehouses and storage centers

 Robotics And Automation

 S. logistics have started incorporating autonomous trucks which, according to

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